NetEnt, a Stockholm-based provider of digitally distributed gaming systems, has entered into an agreement to acquire Isle of Man-based online slot supplier Red Tiger Gaming Limited. The all-cash deal will see NetEnt further plan its strategy to ‘create the future of gaming.
In terms of the agreement, NetEnt will make an initial payment of £200 million and an additional payment of £23 million in 2022. The transaction has been financed primarily through new debt facilities provided by Danske Bank and Nordea and is expected to be accumulated to NetEnt’s EPS in 2020.
Founded in 2014, Red Tiger provides casino games and related software for the international online gambling market. It’s Daily Drop Jackpot Network has paid out more than £2.5 million in daily jackpots since its launch in April of this year.
Red Tiger currently has almost 170 employees in its Isle of Man, Malta and Bulgaria offices. Their content is available across numerous states.
Theresa Hamilton, Group Chief Executive Officer of NetEnt, commented that he is very pleased to welcome Red Tiger into the NetEnt Group. He added that the acquisition combines two of the leading and most innovative companies in the online gaming industry and they look forward to working with Red Tiger’s fantastic team to enhance their combined global reach and to offer further value to operators and players.
Hamilton also said that the transaction will provide significant revenue synergies across their markets worldwide.
Gavin Hamilton, Chief Executive Officer of Red Tiger, said that this is an exciting new stage of the Red Tiger story and they are delighted to become part of the NetEnt group.